Abu Dhabi - Mubasher: Multiply Group announced plans to acquire a minority interest in Breakwater Energy, a wholly owned subsidiary of EIG, for AED 367 million, equivalent to $100 million.
This investment comes under the group’s sector-agnostic arm Multiply+, according to a press release.
Following the transaction, the ADX-listed firm will become part owner of a cash-generative and diversified global upstream portfolio that will secure an attractive dividend profile.
Through its subsidiary, EIG, a leading institutional investor in the global energy and infrastructure sectors, acquired a 25% stake in gas-weighted exploration and production firm Repsol E&P.
Breakwater Energy completed the acquisition of Repsol E&P last March for nearly $4.80 billion, including debt, with Repsol retaining the remaining 75%.
Samia Bouazza, Group CEO and Managing Director of Multiply Group, said: “The minority stake in Repsol E&P through EIG’s Breakwater Energy is a good fit for our Multiply+ portfolio, which identifies attractive dividend-paying investments with the mid-to-short-term horizon.”
“Repsol’s management has a strong, proven track record and EIG is one of the world’s leading energy investors, which provides us confidence in their collective ability to deliver on Breakwater Energy’s ambitious plans,” Bouazza noted.
The CEO added: “Multiply Group is well-positioned to continue exploring high-value acquisition opportunities and Repsol’s plans to utilise this investment to fuel low-carbon energy projects make this transaction particularly interesting for us.”
Blair Thomas, CEO of EIG, commented: “Energy transition is fundamentally changing our industry and requires new thinking about capital allocation and asset stewardship.”
In the first quarter (Q1) of 2023, the UAE group posted an annual hike of 241% in net profit excluding fair value gains/ losses to AED 266 million.
